CORPO PORATE TE PR PRESEN ESENTATIO TION 3Q/9M 3Q 9M 201 - - PowerPoint PPT Presentation

CORPO PORATE TE PR PRESEN ESENTATIO TION 3Q 3Q/9M 9M 201 2019 9 Res esults ults

Aerial view of Phase I of Sembcorp Marine Tuas Boulevard Yard

1 Aerial view of Tuas Boulevard Yard Phase I and II

CEO ADDRESS CFO FINANCIAL OVERVIEW

2

Scope of Briefing

CEO ADDRESS

 Introduction & Overview  Financial Performance  Operational Review  Projects in Progress and Deliveries  Embracing Change in Business Environment

(Please refer to CEO speech text for details) CEO ADDRESS

3

 Sembcorp Marine has had a challenging but eventful third quarter.  We were able to capture new orders in 3Q 2019 that added $400 million to our order book. These included a breakthrough contract in the highly competitive Taiwanese offshore wind sector that will help us gain further traction in the offshore wind market.  To stay relevant, generate additional value, and grow our business, we are actively tapping the global transition towards a greener energy mix.  On Nov 1, we also announced our second floating production unit (FPU) fabrication and integration project from Shell.  On the financial side, our current priority is in ensuring that we have a healthy cash flow that meets our operational and capital needs. The $2 billion subordinated loan facility from parent company strengthened SCM liquidity and balance sheet.  For 9M 2019, we generated positive EBITDA and improved operating cash flow.  While maintaining Group-wide cost prudence, we are keeping a balanced focus on our investments in innovation, capability retention and manpower development. These investments will enable Sembcorp Marine to secure higher-value projects in new and existing markets, and to prepare for our future growth.

Over ervi view ew

4

 For 9M2019, the Group generated EBITDA of $134 million.  Operating cash flow surplus (before working capital changes) of $146 million, both of which were improvements from 9M 2018.  9M 2019 Revenue totalled $2.26 billion  Net Loss at $59 million, mainly due to the continued low business volume overall and accelerated depreciation on Tanjong Kling yard.  More to be covered in CFO’s address.

Finan inancial ial Performan mance

2,259 3,975

• 500

1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 9M 2019 9M 2018

Financial Performance - Revenue ($m)

134 84 (59) (80)

(100) (50)

• 50

100 150 9M 2019 9M 2018

EBITDA & Net Loss ($m)

EBITDA Net Loss

5

 Besides the new offshore wind contract, which we signed with first-time customer Jan De Nul, the Group won an FPSO conversion job from Shapoorji Pallonji and Bumi Armada, as well as a repeat FPU order from Shell. The new Shell FPU project is for the Whale field in the Gulf of Mexico. It comes after the Shell Vito FPU secured last year and now under construction at Tuas Boulevard Yard. As we take on the Whale FPU project, we will be harnessing considerable synergies from the ongoing Vito project.  Year-to-date new contracts amount to $845 million, compared to $730 million in the same period last year.  Siccar Point Cambo Field FPSO – customer has selected Sevan cylindrical hull solution and engaged us for an exclusive FEED study. This puts Sembcorp Marine in the prime position to clinch the project once Siccar Point and their partners move ahead with the Final Investment Decision.  With $845 million new orders thus far in 2019, our net order book now stands at $2.42 billion, excluding the Sete Brasil drill ships.

Oper Operation

• nal

al Revi view ew

6

 On Oct 7, we announced a final settlement with the Sete Group on the seven drill ship contracts signed with them in 2012. The agreement is subject to the fulfilment of certain conditions precedent.  Under the settlement, the titles to five of the seven drill ships will be retained by us, while the titles to the remaining two drill ships in advanced construction progress will be apportioned between Sembcorp Marine and Sete Brasil according to payments we already received from the latter.  Once the conditions precedent are met, the drill ship contracts will be terminated and the parties involved will mutually release each other from all claims related to the contracts.

Sete Sete Br Brasi sil l Dri Drill ll Ship Co Ship Contracts

7

 Repairs & Upgrades business posted strong results in the third quarter with 67 vessels repaired, refurbished and upgraded. This brings the total to 220 vessels in the first nine months of 2019, with a higher average revenue per vessel of $1.78 million, compared to $1.46 million per vessel in the same period last year.  In the FSU/FSRU segment, we secured five new contracts for conversion and upgrading, valued at $71 million in total. These projects are among 55 LNG-related repair and upgrade jobs we have thus far received, which is a new industry record for the highest number in a single year, exceeding the 2018 record of 41 vessels – also by Sembcorp Marine.  The new IMO regulations on ballast water treatment and fuel sulphur reduction continue to bring good opportunities for Repairs & Upgrades business. To date we won installation

• rders for 99 scrubber units, to be completed in the first half of 2020, and ballast water

management system installation projects for 109 vessels, which we will complete by 2021.  Our Green Technology Retrofit Solutions generated $50 million of revenue in 9M 2019. We are confident this segment will grow further.

Rep epair airs s & & Upg pgrad ades es

8

 Sembcorp Marine’s major projects are on track, including the Johan Castberg and Karish newbuild FPSOs, and the Shell Vito FPU. We recently also kicked off the construction phase of the 12,000-cubic-metre LNG bunker tanker project with MOL.  On Nov 8, we delivered the Q7000 well intervention semi-submersible rig to Helix Energy Solutions, demonstrating a firm commitment with the customer to complete the project despite the challenging market conditions.  We are very proud of the Q7000 project as it shows how our design and engineering expertise enhances the functionality of our customers’ ships, rigs and offshore platforms. To reinforce this differentiated value and strengthen our competitive advantage further, we are building new capabilities continuously.  In Brazil, our Estaleiro Jurong Aracruz (EJA) facility handed over the P-68 FPSO to Petrobras on Sep 16, crossing a very important milestone with the completion of its first major project. This successful delivery is proof of EJA’s ability to take on full EPCC

• ffshore projects. The yard is now working to complete the P-71 FPSO modules

fabrication and integration project, also for Petrobras. EJA has also secured contracts for the repair and upgrade of several semi-submersible drilling rigs and drill ships.

Pr Projects jects in P in Progress ss & De & Deli liveries ies

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• Project: To fabricate 15 jacket foundations for

the Formosa Phase 2 Offshore Wind Farm for customer Jan De Nul n.v.

• Delivery planned for December 2020.
• The Formosa 2 offshore wind farm is being

developed off the coast of Taiwan by a joint venture between Macquarie Capital and Swancor Renewable Energy, a subsidiary of Swancor Holding.

Secured the design and build contract for the dual-fuelled LNG bunker vessel for Mitsui O.S.K Lines in 1H 2019

New Orders s Sec Secured in FY 20 Y 2019

Located 4km offshore Miaoli County in the Taiwan Strait, the 376MW Formosa 2 facility will be Taiwan’s largest offshore wind farm, generating sufficient electricity for over 380,000 households when it starts operation in late 2021. The 376MW wind farm is being built as part of the zonal development programme by the Taiwan Government, which aims to add 5.5GW of wind power to its energy mix by 2025. Taiwan’s Ministry of Economic Affairs Bureau of Energy has approved three Formosa wind farm projects as part of its goal to commission more than 1,000 wind turbines by 2030.

For

• rmosa

mosa 2 O 2 Offshor fshore e Wind F ind Far arm Pr m Project

• ject – Jan

an De e Nul ul Fabrication of 15 Jacket Foundations

10

Shell Shell Whale F hale Floa loating ing Pr Product

• duction

ion Unit nit (FP (FPU) Construction and Integration of FPU Topside and Hull

• Project: Sembcorp Marine Rigs & Floaters Pte.
• Ltd. has won a contract from Shell Offshore
• Inc. to build and integrate the topside and hull of a

Floating Production Unit (FPU) for the Whale field in the Gulf of Mexico.

• Slated for completion in 2022, the Whale FPU

comprises a topside module and a four-column semi-submersible floating hull, with a combined weight of 25,000 tonnes.

• Agreement precedes a final investment decision

for the full Whale project, expected to be made next year.

• Paves the way for the Whale FPU to move ahead

and take advantage of synergies from the

• ngoing

Shell Vito FPU, currently under construction at Sembcorp Marine’s Tuas Boulevard Yard.

• Location: The FPU will operate in the Alaminos

Canyon Block 772.

The state-of-the-art 30,000-tonne cranes at Tuas Boulevard Yard will enable the efficient assembly of the Whale FPU topside into a mega- block and combine it with the hull efficiently in one single lift The yard’s enormous lifting capacity is becoming a winning differentiator for Sembcorp Marine’s project execution.

New Orders s Sec Secured in FY 20 Y 2019

• Project: Exclusive Front-End Engineering and Design (FEED) contract to deliver a floating production, storage and
• ffloading (FPSO) design solution based on Sembcorp Marine’s proprietary Sevan geostationary circular hull
• Customer: Siccar Point Energy E&P Ltd
• Design Advantage: Cost-effective alternative to traditional ship-shaped/turret-moored designs. Eliminates the need

for a costly turret while accommodating a larger number of risers and flexibility for future tie-ins.

• Location: Cambo field in the UK Continental Shelf. Located 125km northwest of the Shetland Islands, the Cambo

field has a water depth of 1,100m.

New ew Orde ders s De Develop elopmen ment

Si Sicca ccar P Point

• int FE

FEED ED Cont

• ntract

act Front-End Engineering and Design (FEED) of Circular Hull FPSO Solution

12

13

Helix Q elix Q7000 7000 Newbuild Semi-submersible Well Intervention Vessel

Project: Construction of second newbuild semi-submersible well intervention vessel based on a design jointly developed by Sembcorp Marine and Helix Customer: Helix Energy Solutions Delivery: Early November 2019 Charter: Expected to commence first project in Jan 2020, providing subsea services off the West African coast

13

Recent Pr Project ject De Deli liveries ies

Project: Fabrication and integration by Brazil yard Estaleiro Jurong Aracruz of FPSO topsides, including six modules, pipe-racks and a flare as well as execution of carry-over works on a newbuild FPSO hull built by another yard Customer: Petrobras Delivery: Sep 2019, deployed to ultra-deepwater Berbigão and Sururu fields in Brazil’s Santos Basin

• Significant operational milestone for

wholly-owned and

• perated

Brazil subsidiary Estaleiro Jurong Aracruz (EJA) – Completion of first floating production, storage and offloading (FPSO) project.

• FPSO has production capacity of

150,000 barrels of oil per day and 1.6- million-barrel storage capacity, with accommodation for 154 pax

Recent Pr Project ject De Deli liveries ies

Pet etrobr

• bras

as P-68 FPS 68 FPSO Hull carry-over works and topside modules fabrication and integration

14

Johan

• han Castber

astberg g Pr Project

• ject for
• r Equinor

Equinor Turnkey Engineering, Procurement and Construction of Newbuild FPSO Hull and Living Quarters

Ongoing Projects ts – Johan Castb stberg FPSO

Project: Turnkey engineering, procurement and construction of newbuild FPSO hull and living quarters Customer: Equinor (formerly Statoil) Operation: Johan Castberg field development, Barents Sea, offshore Norway

15

Project: EPC construction and integration of a newbuild FPSO hull, living quarters and topside modules, including owner-furnished equipment Customer: TechnipFMC Operation: Karish deepwater field developments in the Eastern Mediterranean

Tec echnipFMC K hnipFMC Kar arish FPSO ish FPSO EPC construction & integration of FPSO hull, living quarters & topside modules

Ong ngoing

• ing Pr

Projec

• jects

s – Kari arish FPS sh FPSO

16

Ong ngoing

• ing Pr

Projec

• jects

s – Shell Shell Vito

• Pr

Projec

• ject

Project: Construction and integration of hull, topsides and living quarters for Shell’s Vito semi- submersible Floating Production Unit (FPU), including installation of owner-furnished equipment Customer: Shell Offshore Inc. Operation: Mississippi Canyon, US Gulf of Mexico

Construction and Integration of FPU Hull, Topsides and Living Quarters

17

High gher er value w value wor

• rk

k at Rep epair airs s & & Upg pgrad ades es

9M 2019 REPAIRS & UPGRADES – DIVERSE MARINE & OFFSHORE PROJECTS

Tuas Boulevard Yard Admiralty Yard

High gher er value w value wor

• rk

k at Rep epair airs s & & Upg pgrad ades es

9M 2019 REPAIRS & UPGRADES – LNG Repairs

On track for a record year with a steady stream of LNG carriers calling for refits and upgrading works at Sembcorp Marine’s yards in 9M 2019

Repairs and installation of scrubbers on Diamond Princess for Princess Cruises Concurrent major refit and refurbishment of Norwegian Joy for Norwegian Cruise Line and Explorer Dream (ex-SuperStar Virgo) for Genting Cruise Lines

High gher er value w value wor

• rk

k at Rep epair airs s & & Upg pgrad ades es

9M 2019 REPAIRS & UPGRADES – CRUISESHIPS

Modernisation of Celebrity Millennium for Celebrity Cruises Overhaul and revitalisation of Voyager of the Seas for Royal Caribbean Cruises in 3Q 2019 Sailaway of India’s first cruise liner Karnika, owned by Jalesh Cruises Repair and upgrade of Azamara Quest for Azamara Club Cruises

 As Sembcorp Marine navigates the current market challenges, we are mindful that the offshore, marine and energy sectors are readily responding to a global shift towards the use of greener energy.  Major oil and gas companies – our traditional customer base – are increasingly diversifying their portfolios to include clean and renewable products such as offshore wind, and they now see themselves more holistically as producers of Energy, rather than oil or gas. This opens up exciting opportunities in terms of the variety, breadth and depth of solutions and services Sembcorp Marine can offer in an expanded energy value chain. But it also means our business, operational and cost models must change. And they have.  For instance, we are now engaging companies that produce, transport or consume a wider spectrum of energy sources, including oil, gas, wind, battery and hydrogen fuel cells.

Emb Embracing Change in Business Environme ment

21

 Our continued investment in capability and capacity building is putting Sembcorp Marine in the driver’s seat to compete for projects in new customer bases and market segments. Although this does imply certain functions like engineering are becoming fixed costs, it is necessary for our current and future growth, along with our efforts to incorporate the latest technologies and innovations into our products, services and operations.  In this regard, we see 3D printing particularly as a game-changer. On Oct 29, the Group received certifications from DNV GL qualifying our 3D printing procedures and specifications for making and restoring components used in construction and repair projects.  While we still have a lot more to do, we want to work towards a 3D printing capability that gives Sembcorp Marine greater self-sufficiency and reduces

• ur supply chain risks. We are excited by the possibilities that 3D printing

brings.

Emb Embracing Change in Business Environme ment

22

22

 Continuous innovation and technological improvements extend deep and wide into

• ur shipyards. A vital addition to our yard capability is a pair of gantry cranes at Tuas

Boulevard that can handle 30,000 tonnes in one lift. This is a winning differentiator for Sembcorp Marine because gigantic offshore structures can be fabricated, assembled and transported out of Tuas Boulevard Yard with optimal efficiency.  Sembcorp Marine and our customers will effectively overcome the hurdle of insufficient lifting capacity that previously may have led to major projects incurring more time, logistics and cost when structures could only be fabricated, assembled

• r delivered in several smaller parts.

 Future installation work at Tuas Boulevard could extend to FPSOs where assembled mega-size modules or a complete integrated turret mooring system is fitted on to the hull as a single component. Our 30,000-tonne lifting capacity will enable us to execute bigger and higher-value projects, with faster turnaround.

Inn Innova vation

• n at Tua

uas s Bo Boule ulevar vard d Yar ard d

23

 Notwithstanding the difficult market conditions, Sembcorp Marine is competing aggressively for jobs in new and existing segments. We are making good progress in

• ur continuing negotiations on a number of attractive project prospects. We are

executing our ongoing jobs with improving efficiency, and we remain focused on

• ptimising our operating costs – without compromising quality and safety.

 Our game plan of embracing new innovation and building future-oriented capabilities will prepare Sembcorp Marine for the opportunities and challenges ahead. And to translate these capabilities into new orders and regular revenue streams, we will focus on enhancing our brand visibility and awareness, especially in segments of

• ur expanded market base that are relatively unfamiliar with the Sembcorp Marine

Group.  On this note, we are confident Sembcorp Marine can and will continue to create long- term, sustainable value for our stakeholders.

Inn Innova vation

• n at Tua

uas s Bo Boule ulevar vard d Yar ard d

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CFO Presentation

 Earnings Performance  Financial Position

25

Key highlights: For nine months ended 30 September 2019: Turnover totalled $2.26 billion compared with 9M 2018 at $3.98 billion. Group EBITDA of $134 million. Net loss attributable to shareholders of $59 million. Secured $845 million in new orders in 2019 to-date. Group net orderbook stands at $2.42 billion.

Perf erfor

• rman

mance ce High ghligh ghts s

26

Financial Highlights

Group (S$ million) 3Q 2019 3Q 2018 % change 9M 2019 9M 2018 % change Turnover 717.2 1,167.2 (39) 2,259.0 3,974.7 (43) Gross Loss (46.2) (12.8) n.m. (19.8) (16.8) 18 EBITDA 9.2 22.2 (58) 134.3 84.0 60 Operating Loss (52.9) (21.3) n.m. (50.2) (54.4) (8) Loss before tax (64.4) (35.0) 84 (80.7) (95.3) (15) Net Loss (52.6) (29.8) 77 (59.5) (80.1) (26) EPS (basic) (cts) (2.52) (1.42) 77 (2.85) (3.83) (26) NAV (cts) 107.72 *110.68

• * as at 31 December 2018

27

Fina Financ ncial al Revi view: ew: Reven enue ue

746 1,180 811 649 1,627 731 729 1,167 717 912 913

3,035 4,888 2,259

• 1,000

2,000 3,000 4,000 5,000 6,000 2017 @ 2018 2019 year to date

$ million

9M 2019 Revenue: $2.26 billion

1Q 2Q 3Q 4Q

28

Fina Financ ncial al Revi view: ew: Net et Pr Profit

• fit/L

/Loss

• ss

37 5 2 5

• 56
• 9

101

• 30
• 53

117 6

260

• 74
• 59
• 150
• 100
• 50

50 100 150 200 250 300

2017 @ 2018 2019 year to date

$ million

9M 2019 Net Loss: $59 million

1Q 2Q 3Q 4Q

@ Adjus ted on adoption of S F R S (I) on January 1, 2018.

29

Bu Busi siness ss Revi view: : Turnover by by Se Segmen ments

Turnover ($ million) 3Q 2019 3Q 2018 % change 9M 2019 9M 2018 % change Rigs & Floaters 513 989 (48) 1,735 3,402 (49) Repairs & Upgrades 146 131 11 391 336 16 Offshore Platforms 40 25 59 89 172 (48) Specialised Shipbuilding 9

• n.m.

16

• n.m.

Other Activities 10 22 (56) 28 65 (57) TOTAL 717 1,167 (39) 2,259 3,975 (43)

Rigs & Floaters 77% Repairs & Upgrades 17% Offshore Platforms 4% Specialised Shipbuilding 1% Other Activities 1%

9M 2019: $2.26 billion

Rigs & Floaters 86% Repairs & Upgrades 8% Offshore Platforms 4% Other Activities 2%

9M 2018: $3.97 billion

30

Rig building revenue was $691 million in 9M 2019 (9M 2018: $2.7 billion)

• n recognition of delivery of 1 jack-up rig to Borr Drilling of $216 million,

and drill ship revenue from ongoing Transocean projects of $388 million ($255m in 9M 2018), with semi-subs rev at $86 million ($917m in 9M 2018)

Co Core e Bu Busi sine ness ss: Rig Rig Bu Building ding

488 1,700 1,489 216 574 1,005 917 86 11 382 255 388

1,073 3,086 2,661 691

2017 (restated) 2018 9M 2018 9M 2019

REVENUE – RIG BUILDING ($ MILLION)

Drillship Semi-Sub drilling, accommodation, well intervention, crane Jack-up, Other rigs

Jack-up Rigs, Semi-submersibles, Drill Ships

• No. of

Projects Brief description

• Number of jack up rigs

delivered in 9M 2019

• Number of semi-subs

delivered in 9M 2019 1 1

• Borr Drilling jack-up rig P2052
• Heerema Offshore semi-sub crane

vessel

• Number of projects in

WIP stage 2

• 1st drill ship for Transocean, JE III
• 2nd drill ship for Transocean, JE III
• Number of projects sold

to new buyer 2

• Drill ship 1, previously owned by

Sete Brasil The new purchaser is expected to negotiate with the Group to enter into new contracts to complete the drillships.

• Drill ship 2, Sete Brasil, previously
• wned by Sete Brasil

31

• 9M 2019 Floater revenue increased 40% to $1.04 billion on

higher percentage recognition for the Johan Castberg, Shell Vito and Karish FPSO projects.

Co Core e Bu Busi sine ness ss: Floa

• ater

ers s

2017 2018 9M 2018 9M 2019

644 1061 741 [VALUE] REVENUE - FLOATERS ($ MILLION)

Offshore Floating Production Newbuildings/ Conversion

• No. of

projects Brief description

• No. of Projects delivered in

9M 2019 1

• P68 FPSO for Petrobras
• No. of projects in the WIP

stage 4

• P71 FPSO for Petrobras
• Equinor Johan Castberg

FPSO project

• Shell Vito FPU project
• Karish FPSO project
• No. of projects in the

Planning stage 2

• Shapoorji FPSO project
• Shell Whale FPU project

32

• 100

200 300 400 500 600 700 800 2017 2018 9M 2018 9M 2019

732 184 173 89 REVENUE – OFFSHORE PLATFORMS ($ MILLION)

Co Core e Bu Busi sine ness ss: Offsho fshore e Pl Platfor

• rms

ms

Offshore Platforms

• No. of

projects Brief description

• No. of projects

delivered in 9M 2019 Nil

• No. of projects in WIP

stage 4

• Tangguh LNG

modules

• Hornsea II jackets
• Hornsea II substation

topsides

• Formosa 2 - 15
• ffshore windfarm

jackets foundations

• Offshore Platforms revenue was $89 million in 9M 2019 on

contributions from Hornsea & Tangguh projects.

33

2017 2018 9M 2018 9M 2019

499 476 336 391 REVENUE – REPAIRS & UPGRADES ($ MILLION)

Co Core Bu Busi siness: ss: R Repair irs s & U & Upgrades

• Revenue from Repairs & Upgrades totalled $391

million in 9M 2019 (9M 2018: $336 million), on higher average revenue per vessel due to improved vessel mix on relatively higher value works.

Period 9M 2019 9M 2018 % change No of vessels repaired 220 230 (4) Average value per vessel ($m) 1.78 1.46 22 Total repair revenue contribution ($m) 391 336 16

34

Co Core Bu Busi siness: ss: S Speciali ialised sed Shipb Shipbuil ilding ing

• Maiden revenue contribution from Specialised

Shipbuilding was $16 million for 9M 2019 on recognition of ongoing Ropax ferries projects.

Specialised Shipbuilding

• No. of

projects Brief description

• No. of projects delivered

in 9M 2019 Nil

• No. of projects in WIP

stage 3

• Ropax ferries

1

• LNG bunker vessel

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 9M 18 9M 19

16

REVENUE - SPECIALISED SHIPBUILDING ($ MILLION)

35

CA CAPITAL, AL, GE GEAR ARING NG & R ROE OE

Group ($ million) Sep-19 Dec-18 % change Shareholders' Funds 2,250 2,312 (3) Net Debt 3,684 3,391 9 Net Working Capital (297) 198 n.m. Net Gearing ratio (times) (excluding subordinated loan) 0.96 1.44 (33) Net Gearing ratio (times) 1.61 1.44 12 Interest coverage ratio (times) 1.3 1.4 (7) ROE (%) annualised (3.5) (3.1) 13 ROTA (%) annualised 0.6 0.3 100 Net Asset Value (cents) 107.72 110.68 (3)

36

CASHFL HFLOW

Group ($ million) 7 3Q 2019 3Q 2018 % change 9M 2019 9M 2018 % change Operating profit/(loss) before working capital changes 21 23 (9) 146 89 64 Cash generated from/(used in) operations (279) (63) n.m. 17 (101) n.m. Net cash flow from operating activities (290) (78) n.m. (17) (154) (89) Net cash flow from investing activities (mainly Capex) (67) (159) (58) (270) (265) 2 Net cash flow from financing activities 37 69 (46) (86) (201) (57) Net increase/(decrease) in Cash (320) (169) 89 (373) (620) (40) Cash in balance sheets 468 683 (31) Borrowings (4,152) (3,944) 5 Net Debt (3,684) (3,261) 13

37

New Contracts Secured of $845 million)

314 180 911 930 502 1,565 140 55 169 85 1,770

• 85

1,292

• 258

3,171 320 2,735 1,184 845

• 500

1,000 1,500 2,000 2,500 3,000 3,500

2015 2016 2017 2018 2019 YTD

Contracts Secured ($ million)

Floaters Offshore Platforms Jack-Up Jack-Up (cancelled) Semi-submersible - drilling/production/ intervention/crane Drillship Specialised Shipbuilding & Refurbishments

38

Net Order Book at $2.42 billion

1,208 1,538 1,538 1,637 1,367 887 188 188 190 192

• 85

248 260 1,047 1,853 196 1,045 407 407 67 1,309 1,269 1,269 913 616 3,126 3,126 3,126 3,126

7,835 7,575 8,381 6,214 2,423

• 1,000

2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 2016 2017 2017 * restated (SFRS) 2018 2019 YTD

Net orderbook by Product Type

Floaters Offshore Platforms Specialised Shipbuilding/Refurbishment Jack-Up Semi-submersible Transocean drillships Sete Brasil drillships

39

This presentation may contain forward-looking statements that involve risks and

• uncertainties. Actual future performance, outcomes and results may differ materially

from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, exchange rate movement, cost of capital and capital availability, competition from

• ther companies and venues for sale and distribution of goods and services, shifts in

customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy

• changes. The forward-looking statements reflect the current views of Management on

future trends and developments.

Integrated Synergies, Global Possibilities.